We have 58 banks in Tanzania. We want the banking regulator to take action against the failing institutions. We would rather have a few viable banks than many failing ones

“The aforesaid banks are critically undercapitalised,” BoT said, adding that “continuation of their operations in their current position is detrimental to the interest of depositors and poses a risk to the stability of the financial system.”

Statement from Bank of Tanzania:-licences for five banks cancelled, all placed under receivership for breaking core rules. pic.twitter.com/DubTzSMXQf

The move comes three weeks after President John Magufuli ordered ordered the central bank to tighten controls on the movement of hard currency and take swift action against failing banks in a bid to tackle financial crimes and protect the local shilling currency.

“We have 58 banks in Tanzania. We want the banking regulator to take action against the failing institutions. We would rather have a few viable banks than many failing ones,” the president said.

Magufuli pledged to reform an economy hobbled by red tape and corruption and begin a program to develop public infrastructure after he was elected in 2015.